Mangalore Refinery and Petrochemicals Limited (MRPL) has declared a net loss of Rs 500 crore and negative GRM (gross refining margin) at 0.42 $/bbl.
“The total loss before the tax was Rs 763 crore,” MRPL and ONGC Group of Companies chairman Shashi Shanker said while making public the results for the first quarter (Q1, FY 20). He said the gross revenue from operations was Rs 16,583 crore and profit before the tax was Rs 562 crore.
MRPL Managing Director M Venkatesh attributed the loss to acute water scarcity which has disrupted the plant’s operations for a record 45 days. The USA’s sanctions against Iran also had an impact on its revenue, he added.
MRPL’s throughput was 2.56 MMT in the first quarter and 3.85 MMT during the corresponding period in the previous year. “As ours is a standalone refinery, MRPL will continue its foray in to direct marketing and has plans to build 250 retail outlets by the end of this fiscal.”
The supply of crude from the USA is likely to be realised in September. The company’s polypropylene production has increased by 110%. Despite the loss in the first quarter, the company has exuded confidence in bouncing back and making a swift turnaround by summer.
Venkatesh said they have taken precautionary steps to tackle another harsh summer. A temporary containerised desalination plant will be operational from March onwards. Besides the company also is keen on increasing its intake of treated sewage water up to 5 MGD, he said.
The MRPL Board of Directors during the 226th meeting approved its unaudited financial results. MRPL Director (Refinery) M Vinaya Kumar was also present.
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